Financial terms were not disclosed.
Bishop played his first nine seasons for the Houston-Tennessee franchise. Beginning in 1995, he made three consecutive trips to the Pro Bowl and returned to Hawaii after the 2000 season.
Known for his aggressive, physical style, Bishop has recorded at least 100 tackles five times. Injuries limited him to five games last season.
"I love the guy's competitive nature and his toughness," Eagles coach Andy Reid said. "You are talking about a four-time Pro Bowl player, a guy who is one of the best at his position in the National Football League.
"I've had the chance to see him up close and personal from the sidelines in recent years and he's always been one of my favorites to watch. Plus, he's also a great person and will fit in well in our locker room."
Reid already thought he had one of the NFL's best defensive backfields before adding Bishop to a group that includes free safety Brian Dawkins and cornerbacks Troy Vincent and Bobby Taylor.
"There are a number of guys I wanted to play with when I came into the league, and Blaine was one of them," Dawkins said. "I used to watch the Oilers when they played in the `House of Pain,' and he was the one bringing it."
"Blaine has won the AFC championship with the Titans and he's played in the big game," added Taylor, a long-time friend. "That's what we're all looking toward around here."